Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  GlaxoSmithKline plc    GSK   GB0009252882

Delayed Quote. Delayed  - 09/30 05:35:27 pm
1643 GBp   -0.27%
09/30DJGLAXOSMITHKLINE : to Pay $20 Million to Settle SEC Bribery Probe
09/30 GlaxoSmithKline to pay $20 million to settle U.S. foreign bribery..
09/30DJGLAXOSMITHKLINE : to Pay $20 Million to Settle SEC Bribery Probe
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

GSK pounces on Human Genome with $2.6 billion bid

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/19/2012 | 10:05pm CEST

Human Genome Sciences has rejected an unsolicited bid worth around $2.6 billion from long-time partner GlaxoSmithKline, marking a new takeover battle in a drugs sector recently swept by M&A activity.

The U.S. pioneer of gene-based drug discovery, which sells a new drug for lupus with GSK, said on Thursday the offer of $13 per share, made in a letter on April 11, did not reflect the value inherent in the company.

It has hired Goldman Sachs and Credit Suisse to help explore strategic alternatives, including a possible sale. GSK has been invited to participate in that process.

The Rockville, Maryland-based firm was formed 20 years ago with the mission to isolate genes and identify their function in order to develop new drugs. Over the years it has had a rollercoaster ride as hopes for its drugs have waxed and waned.

GSK's offer represents an 81 percent premium to its closing stock price of $7.17 on Wednesday. However, that is still well below the $30 touched a year ago and investors are hoping for more, with the shares doubling to $14.20 by 1930 GMT.

Britain's biggest drugmaker said the rebuff was disappointing as its offer would give investors "immediate and certain value" superior to what Human Genome could achieve as a standalone company.

GSK chief executive Andrew Witty wrote to Human Genome boss Tom Watkins on April 11 setting out the proposal, saying he was prepared to commence a cash tender offer with no financing or due diligence condition.

Buying Human Genome would give GSK full rights to partnered drugs, which include not only Benlysta - the first new drug for lupus in half a century - but also promising experimental drugs for heart disease and diabetes.

Many drugmakers are seeking to do deals to bolster their pipelines, as older products go off patent, and GSK's readiness to buy Human Genome is a sign of confidence in the drugs that the companies have been developing together.

GSK also expects $200 million in cost synergies by 2015, with the acquisition boosting earnings from 2013.

"WHITE KNIGHT" UNLIKELY

Cowen & Co analyst Eric Schmidt said GSK was likely to seal a deal in the end.

"The 81 percent premium versus yesterday's close is a big number, and I'm sure GSK is likely to pay a little bit more to get the deal done. I think it's very likely to be sold to GSK at around $15 or so a share," Schmidt said.

"I doubt anyone else will come in. It's going to be hard for another company to pay that sort of a premium not having the inside scoop on Benlysta or on anything else these two companies are collaborating on."

Tim Anderson of Bernstein said outside interest in Human Genome's drugs was possible but any other non-GSK acquirer would only get partial control, which could deter bidders.

Barclays analysts also see no "white knight" counter-bidder on the horizon, even though the deals between GSK and Human Genome have no tricky change-of-control clauses.

GSK has long been rumoured as a potential acquirer of Human Genome, since it has been in partnership with the firm since 1993 and is already collaborating on a number of medicines.

Still, the decision to pull the trigger on a takeover attempt may surprise some investors because GSK management has tended not to buy out partners it is working with in the past.

BEYOND BENLYSTA

Analysts said GSK clearly saw value beyond Benlysta.

The two companies are also collaborating on a high-profile experimental heart drug called darapladib, which is in Phase III development, and albiglutide for diabetes, which could be filed for approval late this year or early in 2013.

Mark Clark, an analyst at Deutsche Bank, said darapladib was the biggest ticket pipeline opportunity, with up to $10 billion annual sales potential, although researchers will not know if it actually works until key trial results in 2013 or 2014.

Benlysta, which is subject to a 50:50 profit share deal between the two companies, has got off to a slow start but is still seen as having potential sales of $2.15 billion by 2016, according to consensus forecasts from Thomson Reuters Pharma. A year or so ago investors had been hoping for $3-4 billion.

Despite disappointment about Benlysta sales to date, investors are likely to be emboldened in thinking they can get a better price for their Human Genome shares by recent developments that show Big Pharma's hunger for biotech assets.

Only on Wednesday, Illumina Inc saw off a $6.8 billion bid from Roche Holding AG.

Roche, too, chose to make an unsolicited offer after Illumina shares had fallen back and Sanofi SA took the same approach in its successful acquisition of Genzyme for $20.1 billion last year.

Human Genome said it had asked for more information from GSK about progress with the experimental drugs the two companies have worked on together, including darapladib and albiglutide.

GSK, which is being advised by Lazard and Morgan Stanley, said the plan to acquire Human Genome would not affect its intention to repurchase between 1 billion and 2 billion pounds ($1.6-3.2 billion) in shares in 2012.

Shares in the British-based drugmaker rose nearly 1 percent. ($1 = 0.6238 British pounds)

(Additional reporting by Sophie Sassard, with Lewis Krauskopf and Paritosh Bansal in New York; Editing by David Cowell and Gunna Dickson)

By Ben Hirschler

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on GLAXOSMITHKLINE PLC
09/30DJGLAXOSMITHKLINE : to Pay $20 Million to Settle SEC Bribery Probe
09/30 GlaxoSmithKline to pay $20 million to settle U.S. foreign bribery case
09/30DJGLAXOSMITHKLINE : to Pay $20 Million to Settle SEC Bribery Probe
09/30 GSK names new head of Consumer Healthcare division
09/29 GLAXOSMITHKLINE : completes sale of remaining Aspen shares
09/29 GLAXOSMITHKLINE : announces intention to sell remaining holding in Aspen
09/29 GLAXOSMITHKLINE PLC (NYSE : GSK), Oncodesign Sign Deal For Francois Hyafil Resea..
09/29DJGLAXOSMITHKLINE : Appoints New Consumer Healthcare Chief
09/29 GLAXOSMITHKLINE : Glaxo Appoints McNamara To Succeed Walmsley In Consumer Health..
09/29 GLAXOSMITHKLINE : appoints Brian McNamara as CEO of GSK Consumer Healthcare
More news
Sector news : Pharmaceuticals - NEC
09/30 GlaxoSmithKline to pay $20 million to settle U.S. foreign bribery case
09/30DJSHIRE : Files 8K - Other Events
09/30DJNovo Nordisk Announces Job Cuts
09/29DJNOVO NORDISK A/S : to Cut 1,000 Jobs Amid Growing Competition -- Update
09/28DJINTRA CELLULAR THERAPIES : Shares Plunge After Disappointing Drug Trial Results
More sector news : Pharmaceuticals - NEC
News from SeekingAlpha
09/29 Novel Checkpoints Add To The Parp Showdown
09/28 Teva launches generic Epzicom in U.S.
09/26 Whose Drug Pipeline Impresses Most? A Rough Comparison Of GlaxoSmithKline And..
09/26 GILEAD : Ways To Unlock Shareholder Value
09/23 Janssen submits marketing application in U.S. for sirukumab for rheumatoid ar..
Advertisement
Financials ( GBP)
Sales 2016 27 007 M
EBIT 2016 7 141 M
Net income 2016 2 684 M
Debt 2016 13 482 M
Yield 2016 4,87%
P/E ratio 2016 35,70
P/E ratio 2017 21,43
EV / Sales 2016 3,47x
EV / Sales 2017 3,29x
Capitalization 80 105 M
More Financials
Chart GLAXOSMITHKLINE PLC
Duration : Period :
GlaxoSmithKline plc Technical Analysis Chart | GSK | GB0009252882 | 4-Traders
Full-screen chart
Technical analysis trends GLAXOSMITHKLINE PLC
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 17,5  GBP
Spread / Average Target 6,2%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Andrew Philip Witty Chief Executive Officer & Executive Director
Philip Roy Hampton Non-Executive Chairman
Simon Dingemans Chief Financial Officer & Executive Director
Birgitte Volck Head-Research & Development
Moncef Slaoui Executive Director & Chairman-Global Vaccines
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
GLAXOSMITHKLINE PLC19.67%103 947
JOHNSON & JOHNSON15.00%323 189
ROCHE HOLDING LTD.-12.52%214 851
NOVARTIS AG-11.00%207 776
PFIZER INC.4.93%205 444
MERCK & CO., INC.18.16%172 577
More Results